China Pharma Holdings CPHI Stock News

China Pharmaceutical Holdings, Inc. (NYSEAMERICAN: CPHI) recently joined the ranks of other coronavirus stocks that took a dive as profit taking commenced. However, the profit taking seems to be over and the stock is making a dramatic climb in the market this morning. In fact, before the bell, the stock was trading on gains of more than 15%. Here’s what’s going on:

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CPHI Stock Gains As Coronavirus Profit Taking Stops

As mentioned above, like many others in the space, China Pharmaceutical Holdings took a bit of a dive earlier in the week. The move was largely related to profit taking in the coronavirus space as a hole.

Nonetheless, that profit taking is over and investors are pouring into CPHI. So, what’s the deal?

Investors seem to be excited about the company’s recent product launch announcement. In response to the COVID-19 outbreak, Hainan Helpson Pharmaceutical & Biotechnology, a subsidiary of CPHI, launched a wash-free sanitizer.

The company said that the launch was the result of the Chinese Government’s call for work to put an end to the spread of the Wuhan coronavirus. Of course, any product announcement tied to the coronavirus leads to dramatic gains these days. So, on the day of the announcement, the stock flew.

Why Investors Are Still Excited

The bottom line is that COVID-19 is no small issue. To date, there have been nearly 100,000 cases of infection with more than 3,300 consumers dying as a result. Considering that the virus first showed its face in late 2019, this thing is spreading rapidly.

As such, consumers around the world aren’t just paying attention to the story, they are taking measures to avoid becoming infected with COVID-19.

We heard this message loud and clear when Alpha Pro Tech (NYSEAMERICAN: APT) announced that it had clocked in more than $14 million in face mask orders in a matter of weeks.

With the high demand among consumers for options for prevention of COVID-19, there has never been a better time to launch a product like a wash-free sanitizer. CPHI is launching the right product at the right time, and as a result, should see tremendous demand when the product hits the shelves.

All in all, the excitement around CPHI at the moment has to do with the tremendous revenue opportunity that this new, coronavirus related product brings to the table.

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